For the year 2007, the company board of directors declared that they will pay RM50,000 bonuses for their employees. Insurance charges were paid on 1/7/2007 for one year coverage. Provision for warranty was based on 3% of the year sales. The last year provision has not been changed. Provision for doubtful debts was based on 2% of the accounts receivable amount. The last year provision has not been changed as well. Interest charges of 8% per annum for the last quarter of the year have not been recorded. Interest is normally paid in January. Depreciation charges are at 10% per annum on straight line basis. As the Company accountant you are required to: a) Raise the journals for the additional information that are given in the above question. b) Raise the amended trial balance as at 31 December 2007
For the year 2007, the company board of directors declared that they will pay RM50,000 bonuses for their employees. Insurance charges were paid on 1/7/2007 for one year coverage. Provision for warranty was based on 3% of the year sales. The last year provision has not been changed. Provision for doubtful debts was based on 2% of the accounts receivable amount. The last year provision has not been changed as well. Interest charges of 8% per annum for the last quarter of the year have not been recorded. Interest is normally paid in January. Depreciation charges are at 10% per annum on straight line basis. As the Company accountant you are required to: a) Raise the journals for the additional information that are given in the above question. b) Raise the amended trial balance as at 31 December 2007
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 13GI
Related questions
Question
3
![Descriptions
Cash
Fixed Assets
Salaries
Administration Charges
Interest Charges
Telephone Charges
Maintenance Expenses
Prepaid Insurance Charges
Accounts Receivable
Revenue
Accounts Payable
Provision for Warranty
Provision for Doubtful Debts
Owner's Capital
Long Term bank loan
Debit
RM
265,000
100,000
200,000
100,000
6,000
2,000
3,000
8,000
50,000
Credit
RM
12,000
30,000
500,000
50,000
10,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4aee4785-8a37-4a6f-9316-1b4d0ef14e8a%2F3d0095c8-d483-4271-9f1d-99c410c98b08%2F5lbl339_processed.png&w=3840&q=75)
Transcribed Image Text:Descriptions
Cash
Fixed Assets
Salaries
Administration Charges
Interest Charges
Telephone Charges
Maintenance Expenses
Prepaid Insurance Charges
Accounts Receivable
Revenue
Accounts Payable
Provision for Warranty
Provision for Doubtful Debts
Owner's Capital
Long Term bank loan
Debit
RM
265,000
100,000
200,000
100,000
6,000
2,000
3,000
8,000
50,000
Credit
RM
12,000
30,000
500,000
50,000
10,000
![Other information:
For the year 2007, the company board of directors declared that they will pay
RM50,000 bonuses for their employees.
Insurance charges were paid on 1/7/2007 for one year coverage.
Provision for warranty was based on 3% of the year sales. The last year provision
has not been changed.
Provision for doubtful debts was based on 2% of the accounts receivable
amount. The last year provision has not been changed as well.
Interest charges of 8% per annum for the last quarter of the year have not been
recorded. Interest is normally paid in January.
Depreciation charges are at 10% per annum on straight line basis.
As the Company accountant you are required to:
a) Raise the journals for the additional information that are given in the above
question.
b) Raise the amended trial balance as at 31 December 2007](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4aee4785-8a37-4a6f-9316-1b4d0ef14e8a%2F3d0095c8-d483-4271-9f1d-99c410c98b08%2Fnnn8nmx_processed.png&w=3840&q=75)
Transcribed Image Text:Other information:
For the year 2007, the company board of directors declared that they will pay
RM50,000 bonuses for their employees.
Insurance charges were paid on 1/7/2007 for one year coverage.
Provision for warranty was based on 3% of the year sales. The last year provision
has not been changed.
Provision for doubtful debts was based on 2% of the accounts receivable
amount. The last year provision has not been changed as well.
Interest charges of 8% per annum for the last quarter of the year have not been
recorded. Interest is normally paid in January.
Depreciation charges are at 10% per annum on straight line basis.
As the Company accountant you are required to:
a) Raise the journals for the additional information that are given in the above
question.
b) Raise the amended trial balance as at 31 December 2007
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